HSBC/Markit China manufacturing PMI continues to show contraction in July

HSBC/Markit China's manufacturing PMI increased from 48.2 in June to 49.3 in July. The final figure was revised downward from 49.5 of the flash estimate. This points to continued contraction of the manufacturing sector, although the downward momentum has moderated somewhat.

As for the individual components, one thing stands out (via Markit, emphasis ours):

Meanwhile, companies continued to reduce their staff numbers during the month, with the pace of job shedding accelerating to the sharpest in 40 months. Manufacturers commented on employee retirements, company downsizing and the need to streamline workforce numbers in response to falling new order volumes.